US Markets Fall as Tech Stocks Face Heavy Selling Pressure
US stock markets ended lower on Wednesday, breaking a three-day rally, as a sharp 15.7% slump in Advanced Micro Devices (AMD) and selling in major software stocks dragged down key indices.
Key Market Movers
- AMD Tumbles: Shares plunged after the chipmaker’s quarterly revenue forecast missed Wall Street estimates, weighing on the broader semiconductor sector.
- Software Stocks Slide: Companies like Salesforce and ServiceNow faced fresh selling pressure, adding to the negative sentiment.
- Other Notable Declines: Starbucks shares fell 17.2% on a lowered sales forecast, while CVS Health dropped 19.2% after disappointing quarterly results.
Index Performance
The Dow Jones Industrial Average fell 402.41 points (1.06%) to 37,703.79. The S&P 500 lost 37.29 points (0.74%) to 5,022.21, and the Nasdaq Composite dropped 156.38 points (0.98%) to 15,683.37.
Sector-Wide Impact
The technology sector was the biggest loser among the 11 major S&P 500 groups, followed by real estate and utilities. The energy sector was the sole gainer for the session.
Economic Data in Focus
Investors are now awaiting key labour market reports, including weekly jobless claims and the crucial nonfarm payrolls data, for clues on the Federal Reserve’s future interest rate decisions. A recent report showed US private payrolls grew less than expected in April, suggesting a potential cooling in the job market.
